The Wyckoff Pattern is a technical analysis method that is commonly used to read the market behavior of stocks and crypto assets. The Wyckoff pattern is based on the concept that prices are formed by the interaction between supply and demand in the market. Through analyzing volume and price movement patterns, Wyckoff pattern analysts try to identify market phases, including accumulation, distribution, markup, and markdown.
The Wyckoff pattern also includes several principles, such as the consolidation principle, confirmation principle, flow principle and curve principle. Technical analysis using Wyckoff patterns can help investors and traders make more informed and data-driven investment decisions. However, as with every other technical analysis method, the Wyckoff pattern also has its limitations and is not absolutely reliable.